That is the crankcase vent. It was probably connected to the air box which could be why there is oil in the air box. Early models vented just like your pictures show but EPA mandated it be connected to the air box since venting to the atmosphere is warming the climate, causing the polar bears to die off due to the icecaps melting which then causes the the jet stream to push warm dry air causing drought and forest fires, hurricanes which spin off tornadoes causing shortages of food more use of food stamps rampant rise in disability from vapors coming from that little hose which leads to agressive behavior and finally war which will lead to the extermination of human and non human life leaving the earth as inhabitable as Pluto. OK took my meds now I feel better. It sounds as if you have blow-by. Do a compression test it will probably need rings.
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